SEBI Proposes Streamlined BRSR Framework for Easier Compliance

In May 2024, SEBI released a consultation paper focused on easing compliance for businesses in the area of Business Responsibility and Sustainability Reporting (BRSR). Spearheaded by an Expert Committee, this initiative is part of SEBI’s ongoing efforts to streamline regulations, reduce costs, and promote transparency in ESG disclosures for listed entities. Here’s a breakdown of the proposals:

• Simplified Value Chain Reporting:

The definition of "value chain partners" has been refined. Partners representing 2% or more of the entity’s sales or purchases will now be categorized under this, with a cumulative threshold of 75%. This adjustment reduces the reporting burden while maintaining comprehensive coverage.

• Green Credits Reporting:

Companies are encouraged to disclose the Green Credits they generate, in line with the MoEFCC’s February 2024 notification. This adds a leadership indicator to BRSR reporting, reflecting environmental contributions.

• "Assessment" Over "Assurance":

SEBI proposes to replace the term “assurance” with “assessment” in BRSR disclosures. This change aims to offer businesses more flexibility, allowing either cost-effective assessments or formal assurance, based on their preferences.

With these proposals, SEBI is aiming to make business responsibility and sustainability reporting simpler and more efficient, supporting India's sustainability journey.

The consultation paper can be accessed here: SEBI | Consultation Paper on the Recommendations of the Expert Committee for Facilitating Ease of Doing Business with respect to Business Responsibility and Sustainability Report